How crypto is taxed in Portugal (IRS)

Does crypto pay tax in Portugal?

Yes, but not always. Since 2023, selling crypto as a Portuguese resident can pay tax on the profit (the capital gain) or be exempt, and the difference is almost always how long you held it¹. Before 2023 there was no specific rule for crypto; today there is, and it pays to know it so your IRS return holds no surprises.

This article covers the most common case: a private investor who buys and sells crypto-assets that are not securities (the vast majority of coins and tokens). Mining, staking and those who do this professionally have their own rules, explained at the end.

What is taxed: the gain

What pays tax is not the sale value, but the profit on the deal, the capital gain:

Gain = sale value − purchase value − costs

Deductible costs are those directly tied to the buy and sell, above all the exchange commissions¹. If you sold for less than you paid, you have a capital loss, which pays no tax and can be offset against crypto gains.

The 365-day rule

This is the rule that changes everything. The gain on selling crypto-assets is only taxed if you sell before completing 365 days of holding. From 365 days, the gain is exempt from IRS, however large¹.

Under 365 days → taxed at 28%. 365 days or more → exempt.

The period is counted from the purchase date to the sale date of each coin, under the FIFO rule (first in, first out): the coins you bought earliest are treated as sold first. You can estimate the tax, based on the days held, with our crypto tax calculator.

A couple of exceptions matter: the exemption does not apply to crypto-assets that are securities, nor where the counterparty is based in a blacklisted jurisdiction without an information-exchange agreement.

The 28% rate (and the aggregation option)

The taxable gain (held under 365 days) is subject to a 28% autonomous rate (Art. 72 of the CIRS)² and reported in Anexo G. It is a flat rate, separate from your other income.

Alternatively, you can opt for aggregation (englobamento): you add the gain to your other income and tax it at the progressive IRS rates. That only pays off at low incomes, where the marginal rate falls below 28%. In our calculator, the rate is editable precisely for this case: leave 28% for the normal situation, or replace it with your marginal rate.

An example

You bought €5,000 of a coin and sold it for €8,000, with €50 of commissions. The gain is €2,950 (8,000 − 5,000 − 50).

• If you held it for less than 365 days, you pay €826 of IRS (28% of €2,950) and keep €2,124.
• If you held it for 365 days or more, the gain is exempt: you pay nothing and keep the €2,950, but you must report the sale in Anexo G1.

Swapping one crypto for another is not taxed

A point that causes a lot of confusion: swapping one crypto for another (for example, bitcoin for ethereum) is not a taxable event. Tax only arises when you convert to euros (legal tender) or use the crypto to buy goods or services. In a crypto-to-crypto swap, the original acquisition value carries over to the new coin, and the gain only crystallises when it exits to euros.

Staking, mining and professional activity

Not everything is a capital gain. Three situations have different rules that the calculator does not cover:

• Staking and crypto lending (rewards and interest) are generally investment income (Categoria E), taxed at 28%. When the reward is paid in crypto, taxation is deferred until the conversion to euros.
• Mining and validation/issuance are business activity (Categoria B), taxed at the progressive rates.
• Those who buy and sell habitually and professionally also fall under Categoria B, not the occasional capital gain of Categoria G.

What to report

Even when you pay no tax, you may have to report:

• Anexo G: taxable sales (held under 365 days).
• Anexo G1: exempt sales (held 365 days or more).
• Anexo J: operations on foreign platforms (most exchanges).

From 2026, foreign platforms automatically report Portuguese residents' operations to the tax authority (DAC8 rules). It is a transparency change, not a change to the rates, but it underlines how important it is to report correctly.

The takeaway

In Portugal, selling crypto before 365 days pays 28% on the profit; from 365 days, the profit is exempt. Swapping one coin for another does not count: only the conversion to euros does. Run your own numbers in the crypto tax calculator and see, for your case, whether the sale is exempt or how much IRS you will pay. As with any tax topic, when in doubt confirm with the tax authority or an accountant.